Bitcoin’s price could rise in 2026 as easing monetary policy injects “massive” liquidity into markets, according to Bill Barhydt, CEO of crypto exchange and wallet company Abra, though other analysts sound more cautious notes.
Speaking to the Schwab Network, Barhydt said he expects a “ton” of liquidity injections from the US Federal Reserve next year as policymakers continue cutting interest rates, potentially reviving quantitative easing and boosting risk assets such as Bitcoin, adding:
“We are seeing quantitative easing light right now. The Fed is starting to buy its own bonds. I think demand for government debt is going to fall significantly next year, along with lower rates. All of this bodes well for all assets, including Bitcoin.”
Regulatory clarity in the US and growing institutional investment, combined with lower interest rates, likely mean BTC and the broader crypto market are in for “a great few years,” he added.
Only 14.9% of investors expect an interest rate cut at the next Federal Open Market Committee (FOMC) meeting in January, down from the 23% of respondents polled in November, according to data from the Chicago Mercantile Exchange (CME) Group.
The bullish price forecast was countered by early Bitcoin adopters and analysts who say that 2026 will be another down year for BTC and that Bitcoin has entered a bear market that may last for months or years.
Related: Here’s what AI models predict for Bitcoin and altcoin price ranges in 2026
Analyst says BTC could bottom out in 2026, and US midterm elections pose a risk
2026 will likely be a bad year for Bitcoin prices, according to early BTC investor Michael Terpin, who forecast BTC could bottom out at about $60,000 in the last quarter of 2026.
A new Federal Reserve chair is also expected to ease interest rates, but better macroeconomic conditions may be offset by the results of the 2026 US midterm elections, he said.
“Anything other than a GOP sweep in the midterms will cripple further regulatory friendliness,” Terpin said.
The odds of a GOP sweep on prediction market Polymarket were 19% at time of writing, with 47% of traders betting on each political party controlling one chamber of Congress.
Joe Doll, the general counsel at non-fungible token (NFT) marketplace Magic Eden, previously told Cointelegraph that the balance of power “almost always” flips in US midterm elections.
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